Thursday, 11 October 2012

Enterprise risk management: The board's role in corporate governance

When it comes to achieving sustainability and growth in today's environment, enterprise risk management (ERM) is widely seen as a necessity, not an option, for companies of all sizes and structures.

Yet, according to the National Association of Corporate Directors' (NACD) 2011 Public Company Governance Survey, only half of companies surveyed have operational ERM programs in place.

While management is responsible for owning the processes related to
risk, boards play a vital role in overseeing companies' everyday
practices and procedures.

In this NACDBoardVision episode, John Brackett, McGladrey
partner and enterprise risk management leader, discusses the issues and
trends board members need to keep in mind as they execute their risk
oversight responsibilities, including:

Three areas in which a director's personal or professional experiences are particularly invaluable

The emergence of risk committees and chief risk officers

Key strategies boards should consider to optimize their involvement in risk oversight